Search Ad Prices Up In April

The average price for search ads increased 11 percent during the month of April. In March, the average keyword cost $1.75; in April, it was $1.95. That’s according to the Fathom Online Keyword Price Index (KPI) compiled by Fathom Online.

Due to increased activity in the refinancing and mortgage sectors, keywords in those categories saw the steepest price increases, rising 20 percent to an average $6.49.

Seasonal trends caused some fluctuation in ad rates, though Fathom often advises taking advantage of off-season rates.

Fathom Online Keyword Price Index
Click to view full-size chart

“Seasonality is a big consideration in advertising because the likelihood someone becomes a customer may be higher at certain times of year. However, search marketers are recognizing that many of the same promotion tactics used in traditional marketing to increase sales in off-season periods, are very applicable for search,” said Mathew McMahon, executive vice president of media and marketing at Fathom Online.

The telecom and broadband sectors combined rose 13 percent, from an average $1.85 in March to $2.09 in April.

Prices dipped a scant one percent in both automotive, and travel/hospitality. The automotive market high was seen in September, with average keyword cost of $1.54. April’s average was $1.40. Travel/hospitality saw its high in December, with keywords at $0.97. That average dropped to $0.92 in April.

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